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Young Australians struggling to put a roof over their heads

A rental affordability survey, conducted by Anglicare Australia reveals that less than one percent of nearly 56,500 rental properties across Australia were affordable to anyone on a Newstart allowance, a parenting payment , or other pension. Tony Eastley speaks to Anglicare executive director, Kasy Chambers.

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TONY EASTLEY: Young Australians are struggling more than ever to put a roof over their heads as private rental costs soar.

A rental affordability survey conducted by Anglicare Australia reveals that less than one per cent of nearly 56,500 rental properties across Australia were affordable to anyone on a Newstart allowance, a parenting payment, or other pension.

In capital cities young single people - including those on the minimum wage - are also struggling.

Kasy Chambers is the executive director of Anglicare Australia.

Kasy Chambers this report that you've produced, it's the fourth one. Does it provide any surprises?

KASY CHAMBERS: Unfortunately not Tony. We'd like to say we were surprised at the dire level but we're probably not, so it's no surprise. But the sheer numbers, it is just mind-boggling. Out of the 56,000 properties nationally, less than one per cent across the board were affordable for people on low incomes. Even for couples with dual minimum wage, we're looking at less than 8.5 per cent that were affordable.

TONY EASTLEY: What do you say is an affordable rent?

KASY CHAMBERS: If they're spending more than 30 per cent of their income on housing, that puts them into housing stress.

TONY EASTLEY: It's not just people on allowances or pensions, it's people on wage: they're earning a wage but they simply can't afford to rent.

KASY CHAMBERS: That's right, which is really very disturbing. Housing is the very foundation we build the rest of our lives on. It's very hard for a young child to do their homework if they're in a house where they haven't got their own bedroom. It's very hard for an adult to get a job if they're worried about the cost of their housing.

TONY EASTLEY: Where there any groups particularly hit when you talk about people on minimum wages?

KASY CHAMBERS: If you were a single person on Newstart, out of those over 56,000 properties, there were 13 across the country that were appropriate and affordable.

TONY EASTLEY: What city is our hardest hit?

KASY CHAMBERS: Well it's easy to say where's not hit to be honest. Certainly if you're single there would be nothing in any of the capital cities. And families are going to struggle too; really three per cent listings in Hobart, just one per cent in Brisbane, and nothing in the other capital cities.

TONY EASTLEY: What about regional areas, are they finding it tough as well?

KASY CHAMBERS: If we think about, for example, people on an aged pension, you look at areas like Port Stephens in Northern New South Wales - which is known as a bit of a retirement place. There were only six properties there that were affordable out of 263. In the Pilbara and Kimberley, rent had actually fallen there by up to 21 per cent but still the average rent was $1079.

TONY EASTLEY: Haven't people always historically on low wages and on pensions or allowances struggled with private housing?

KASY CHAMBERS: The private rental market has traditionally filled the gap between public housing and private ownership. It is getting harder to get into, which means that for this group, they're really getting squeezed.

TONY EASTLEY: What's the solution?

KASY CHAMBERS: Every government needs to pay attention to this. We're seeing state governments pulling back in areas that support people in the rental market. But certainly federally we do need to be saying we recognise the tight fiscal situation, but we really do need to be saying with those kind of figures for people on Newstart we do need to be seriously looking at upping those benefits. We also need to look at the effectiveness of Commonwealth rental assistance. The rental market is very variable across locations, and we really need to look at things around negative gearing and around the kind of taxation treatments that limit the growth of the private rental market.